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Point of Focus
- XRP’s repeated break below $1 signals that this crucial support level is weakening.
- Slowing ETF inflows suggest institutional and retail demand has lost momentum.
- Bearish technical indicators point to an initial downside range of $0.80-$0.95.
XRP’s decline below the psychologically important $1 level has intensified concerns that the Ripple-linked cryptocurrency could face deeper losses.
The token fell to approximately $0.995, its lowest price since November, extending a decline that has erased roughly 72% from its all-time high.
Although buyers have repeatedly attempted to defend $1, weakening institutional demand, slowing XRP Ledger activity and bearish technical indicators suggest that the support level is becoming increasingly fragile. If XRP fails to recover decisively, a move toward $0.70 could become the market’s next major downside scenario.
XRP ETF demand loses momentum
Declining demand for XRP exchange-traded funds is one of the clearest warning signs. XRP funds attracted only around $3.27 million in August, compared with $27 million in July and more than $131 million at their May peak.
The funds have generated approximately $1.51 billion in cumulative inflows, but their current net assets have fallen to about $933 million.
This slowdown indicates that institutional and retail investors are becoming more cautious as the broader cryptocurrency market remains under pressure.
Renewed ETF inflows could help XRP reclaim $1. However, without a meaningful recovery in demand, the funds may provide insufficient buying pressure to offset further selling.
XRP Ledger activity is weakening
Fundamental activity across Ripple’s ecosystem has also deteriorated. Ripple USD’s market capitalization has slipped from its year-to-date high of $1.81 billion to around $1.71 billion.
Meanwhile, XRP Ledger metrics show declines in active accounts, transaction volumes and fees.
The network’s total value locked has fallen from a record $115 million to approximately $29 million. Quarterly chain fees have also dropped sharply from a peak of $1.4 million to just $48,120.
These figures weaken the argument that expanding network usage can support XRP’s valuation during the current downturn.
Technical indicators favor further losses
XRP’s technical structure adds to the bearish outlook. The token has broken below the lower boundary of a descending triangle, a pattern commonly associated with continued downside.
It is also trading below its 50-day exponential moving average, while its relative strength index (RSI) remains below 50 and is trending downward.
If XRP cannot quickly recover above $1, it could initially trade between $0.80 and $0.95. A failure to regain $0.95 during the fourth quarter would increase the probability of a decline toward $0.70.
Regulatory progress, stronger ETF inflows or improving market conditions could reverse the trend. For now, however, weakening fundamentals and bearish price action leave XRP exposed to another significant leg lower.
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